At By Design Law, we understand that entrepreneurs face numerous challenges in competitive environments like Seattle. Luckily, they can delegate many essential tasks to a dedicated legal advocate. Need legal advice for your business? Connect with us online today.

In an increasingly digital world, life—and business—happens online. To be successful, many business owners must interact with an online customer base in addition to their local clients. Although this connectivity offers many potential benefits to entrepreneurs, it also comes with certain risks.

Cybercriminals employ various types of trickery and fraud to gain access to sensitive information. In most cases, the end goal is to access financial information in order to steal money. One of the most difficult-to-recognize and insidious forms of cyber fraud is phishing scams.

If you are a business owner in Seattle, it’s essential to understand the ways in which your company may be vulnerable to online attacks. This article will explore the nature of phishing scams, including types of phishing scams, legal recourse for entrepreneurs, and how an experienced cybersecurity and data privacy lawyer can help.

Understanding the Nature of Phishing Scams

Simply put, phishing scams are fraudulent activities intended to deceive people into giving away sensitive information. This may include usernames, passwords, credit card numbers, and any other type of information that would allow them to access finances. These scams are conducted through electronic communication, such as through text messages, email, and social media platforms.

When reaching out to potential victims, scammers often pretend to be a trustworthy entity, such as a bank, well-known company, or government agency. This helps them to create a sense of legitimacy, which lends credibility to requests for sensitive data. Phishing scams typically involve a few key elements, including the following:

• Deceptive messaging

• Malicious links or email attachments

• Requests or demands for sensitive information

• Sense of urgency or threats

• Sophisticated, personalized techniques

If you’re a Seattle business owner, it isn’t enough for you to stay vigilant and skeptical of suspicious communication attempts—your employees need to as well. To protect your company assets from phishing scams, your whole staff needs to be aware of the dangers and what they look like. 

Types of Business Phishing Scams

Seattle businesses are susceptible to a wide variety of phishing scams, some of which can be difficult to detect. If you’re a business owner, you may be vulnerable to a specific set of scams, including the following:

• Email impersonation. In this scam, fraudsters impersonate trusted business associates, including executives, other employees, or even partners, in email communications. Typically posing as a work supervisor or executive, scammers will direct employees to make wire transfers to their fraudulent accounts.

• Invoice fraud. Scammers may send fake invoices that appear to come from a legitimate supplier or service provider and ask you to resend payment information or create a new account (for the purpose of obtaining payment information).

• Tax-related scams. These scams are especially common around tax season and involve emails from someone claiming to be an IRS representative or tax authority. The fraudster will request financial information or payment for outstanding taxes, often threatening legal action for noncompliance.

• Tech support scams. Perhaps one of the most insidious phishing scams, some hackers will call businesses, claiming to be their tech representative. They will say your systems are compromised or infected with malware to try to get you to allow them remote access to your computers. Once in the system, they can access all types of sensitive information, including financial data.

• Ransomware attacks. Ransomware attacks often begin with a phishing email that contains malicious links or attachments. If opened, malware automatically installs on your system, locking or encrypting your business data. The attackers then reach out and demand a ransom to restore your access.

• Charity scams. Many Seattle businesses contribute to charities, donate to causes, or help with various types of fundraising, and unfortunately, scammers take advantage of that. They may email your business posing as a charitable organization and request donations through a social payment service (like Paypal or Venmo), or through their fraudulent website.

Phishing scams have evolved since the early days of the internet, and pleas from the deposed Nigerian prince are far and few between. Scammers are increasingly adept at seeming legitimate and adding personal details that tailor their messages to the recipient.

Although vigilance, education, and cybersecurity measures all play a role in preventing phishing scams, they aren’t always enough. If you’ve fallen victim to a phishing scam, you need to understand your options for legal recourse.

Legal Recourse for Seattle Business Owners

In Washington, business owners victimized by phishing scams may be able to pursue compensation for their losses through a few different legal avenues. The best approach depends on various factors, including the nature of the scam, losses suffered, and more. Here are a few legal actions to consider:

• Civil lawsuits. Washington law allows fraud victims—including victims of phishing scams—to file civil lawsuits against the perpetrators. Plaintiffs in these cases can pursue compensation for all of their scam-related damages.

• Breach of contract claims. Under Washington contract laws, a business can seek damages through a breach of contract claim if a phishing scam resulted in a failure to deliver on promised services or goods.

• Injunctions. Washington courts can issue injunctions to stop the ongoing harm caused by phishing scams. For example, an injunction can block the continued unauthorized use of a business’s intellectual property by a scammer.

• Reporting to regulators. Although not a direct method for seeking damages, reporting fraud to regulatory agencies like the Federal Trade Commission (FTC) can lead to investigations and, possibly, legal actions against the scammers.

• Reversing unauthorized transactions. Under Washington State laws, phishing scam victims can pursue legal action to recover damages and collaborate with financial institutions to reverse certain fraudulent transactions.

• Legal action under consumer protection laws. Washington State’s consumer protection laws were designed to safeguard consumers from deceptive practices, including phishing scams, and can help phishing scam victims recover damages and stop fraudulent activities.

It’s important to note that Washington State’s data breach notification laws require businesses to inform parties affected by data breaches. That means if a phishing scam resulted in a company data breach, you will need to work fast to ensure compliance. A data protection attorney can help you navigate your compliance requirements and pursue legal action against the at-fault parties.

By Design Law: Custom-Tailored Legal Strategies for Seattle Business Owners

Navigating the aftermath of a devastating phishing scam is daunting—especially without legal assistance. Fortunately, businesses and individuals in Seattle have various types of legal recourse available to them. A dedicated attorney with experience in cybersecurity and data privacy, intellectual property, consumer protection, and business law is a crucial legal advocate in your fight for justice.

Luckily, you don’t have to search too far—By Design Law is here to help. As Seattle’s go-to law firm for business protection, we have the expertise, dedication, and experience you need to pursue your case with confidence and efficiency. Ready to get started? Connect with us online to schedule an appointment today.